H.R. 1406 – Reading Mode

111th CONGRESS

1st Session

H. R. 1406

IN THE HOUSE OF REPRESENTATIVES

March 10, 2009

Mr. Kirk introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To direct the Securities and Exchange Commission to reinstate the uptick rule on short sales of securities and to suspend the application of mark-to-market accounting principles.

Short title

This Act may be cited as the Stock Market Recovery Act of 2009.

Reinstatement of the uptick rule

Not later than 90 days after the date of enactment of this Act, the Securities and Exchange Commission shall—

(1)

reinstate rule 10a–1 of the Commission’s rules (17 C.F.R. 240.10a–1);

(2)

rescind rule 201 of regulation SHO (17 C.F.R. 242.201); and

(3)

take such other actions as may be necessary to reinstate the price test restrictions that applied to short sales of securities prior to the Commission’s action in the proceeding entitled Regulation SHO and Rule 10a–1, adopted June 28, 2007 (Release No. 34–55970; File No. S7–21–06).

Suspension of mark-to-market accounting

Not later than 90 days after the date of enactment of this Act, for purposes of any periodic or other reports required to be filed with the Securities and Exchange Commission, the Commission shall suspend, by rule, regulation, or order, the application of mark-to-market accounting principles with respect to any class or category of transaction as the Commission determines necessary or appropriate in the public interest and consistent with the protection of investors.